Many online transactions are considered consummated at the point when the item ordered by an online customer is shipped. For example, customers routinely access the Internet to buy items from online stores. At an online store, a customer might browse items available, select an item for purchase, provide a method of payment, such as a credit card or PAYPAL® account number, and identify an address to which the item should be delivered. The online store then sends the item and charges the customer's account.
Alternatively, some stores, including online stores, choose to operate through an online marketplace, such as, for example, AMAZON®, or EBAY®. A customer's experience through an online marketplace is similar to purchasing through an online store, except that the store that actually delivers the purchased item to the address specified by the customer is not provided with payment information details. For example, a customer may purchase an item through an online marketplace by accessing the online marketplace, and similar to accessing an online store directly, browsing items available, selecting an item to purchase, providing a method of payment, such as credit card or PAYPAL® account number, and identifying an address to which the item should be delivered.
Once the customer submits the order, the online marketplace notifies the store, such as an online store, of the item order; the online marketplace notifies the store that the customer has authorized payment for the particular item and provides the store with the address to which the item should be delivered. The online marketplace, however, does not provide the store with any of the payment method details. Rather, the store must first send the item to the customer-indicated delivery address, and must provide a confirmation to the online marketplace that the item has been sent. One way by which stores provide such confirmation is by providing, for example, a USPS Delivery Confirmation number associated with the item sent.
The online marketplace requires receipt from the store of a confirmation that the item has been shipped before the online marketplace authorizes payment to the store according to the payment method authorized by the customer; the online marketplace takes some percentage of the payment as payment for having provided the online and payment services.
As can be seen from the above-outlined process, online transactions through online stores or through stores operating through online marketplaces, are considered to have reliably been consummated for payment authorization purposes upon confirmation that the item ordered has been shipped. That is, for purchases of items through online stores or stores operating through online marketplaces, shipment confirmation of an item is considered to provide reliable confirmation that the transaction has been consummated.
As compared to an online transaction for an item that is to be shipped by an online store, or for an item that is to be shipped by a store after notification by an online marketplace, some Internet websites allow purchasers to arrange for a local, physical, exchange of an item for payment. For example, CRAIGSLIST® provides listings of many different types of items for sale. As compared to an online purchase, a customer browses items for sale through CRAIGSLIST®. Instead of paying for the item through CRAIGSLIST®, the customer contacts the seller and arranges to meet the seller, in order to see the item and determine whether or not to purchase the item. For example, for a car, the customer would want to see the car and test drive it, before consummating its purchase. Once the customer is satisfied with the item, the customer would provide the seller with some form of payment.
The above-described type of transaction that involves a customer meeting a seller to physically exchange the item being purchased for payment may be referred to herein as a “local marketplace transaction.” The physical exchanging of an item for payment may be referred to herein as a “local marketplace.”
Issues sometimes arise with local marketplace transactions. One issue that sometimes arises is that a local marketplace buyer may provide the local marketplace seller with some form of payment that the seller cannot resolve for sufficient payment. For example, a buyer might provide a seller with a personal check for which there are insufficient funds.
As a result of the above-mentioned insufficient funds problem, some local marketplace sellers require cash payment. In some cases, however, the buyer-provided “cash” may be counterfeit. In other cases, an unsuspecting buyer that brought cash for a local marketplace purchase, has been robbed.
Individuals that might want to sell an item through a website such as CRAIGSLIST® may not be in a position to accept credit cards for payment. Further, a customer may not feel comfortable providing an individual seller that the customer is meeting for the first time in a place such as a grocery store parking lot, or other minimal security location, with credit card information.
As compared to online purchases where shipment confirmation of an item is considered to provide reliable confirmation that the transaction has been consummated, websites that provide for the arrangement of local marketplace transactions have not facilitated online payment because there has been no way to reliably confirm that the local marketplace transaction has been consummated.
Some way is needed to reliably confirm that a local marketplace transaction has been consummated to facilitate reliable online payment consummation.
Further, some companies may not want to, or may not be in a financial position to, provide payment between buyers and sellers on their own website. Such a situation might be a temporary one. Or, for marketing reasons, some companies may want to advertise through a Payment Processor website, that is, a website to which customers provide payment account information, but through which, customers may purchase items from third-party companies. Some buyers may feel more secure providing their payment information to a Payment Processor website than to small operators. However, where companies act to facilitate transactions between third-party Buyers and Sellers, a Payment Processor website owner may not want to be responsible for authorizing payment to such companies unless the companies can provide some way for confirming to the Payment Processor that the transaction for which payment is requested has been completed (consummated). Where companies act to facilitate local marketplace transactions between third-party Buyers and Sellers, a way is needed to reliably confirm to a Payment Processor that the local marketplace transaction has been consummated to facilitate reliable online payment consummation by the Payment Processor.
Many merchants have been upgrading their Point of Service Devices (sometimes referred to herein as “POS devices”) to integrate with Near Field Communication (“NFC”) technology. The aforementioned POS device integration with NFC technology is being done to allow merchants to accept NFC-based payments. One type of NFC-based payment technology has come to be known as “APPLE PAY™.” Notably, each merchant that wants to accept NFC-based payments, such as APPLE PAY™ payments, must upgrade their POS devices to integrate with NFC technology.
As will be understood by someone with ordinary skill in the art, NFC is a set of communication protocols that enable two electronic devices, such as an APPLE® IPHONE®s and an NFC enabled terminal, to establish communication and electronically transfer data.
However, as will be further understood by someone with ordinary skill in the art, not all intelligent phones are NFC-payment-enabled; and not all APPLE® IPHONE®s are NFC-chip-equipped. Therefore, there are many people who have phones that are not NFC-payment-enabled.
That is, presently, if a phone does not have an NFC Chip, then the phone is not NFC-payment-enabled.
After a merchant upgrades to integrate NFC technology with their POS devices, it may not be desirable for the merchant to also consider other types of upgrades in the event that future types of mobile payment technology become available.
Therefore, because not everyone owns an NFC-payment-enabled intelligent phone, it would be helpful for merchants to be able to use their new NFC-enabled POS devices to accept mobile payments from other types of mobile devices, including those that are not NFC-enabled.
Notably, identity theft is at an all-time high. It seems that nearly every day, there are reports of some new cyber-hacking of the confidential and sensitive information of individuals, from banks, retail stores, online retailers, even major medical institutions. Not even the U.S. government has escaped cyber-hacking of confidential information.
Large commercial and governmental institutions are not alone in their vulnerability to cyber-hacking crimes. The emails, websites, and even individual intelligent phones of individuals can be “spoofed”—thereby adding to the identity theft nightmare and authentication dilemma that has unfortunately become so commonplace in our time.
In view of the prevalence of identity theft, including spoofing of individual intelligent phones, a way is needed to safeguard NFC-enabled POS devices from accepting “payment” from spoofed phones that have, and do not have, NFC chips.